Sample Research Paper on GCC Region and Knowledge-Based Economy

GCC Region and Knowledge-Based Economy


The idea of a knowledge-based economy was initially presented by Machlup (5-8), measuring the creation and dispersion of knowledge in the United States. Machlup was the first to measure the dispersion of knowledge as an expansive idea while other benchmarks were concerned with the propagation of experimental knowledge. His estimations offered ascent to a class of writing on the knowledge economy, its arrangements, and its estimations. The main wave, beginning in the 1970s, was concerned with the information of the society. Amid this period, both the terms information and knowledge were utilized reciprocally. The second wave began in the 1990s regardless is continuous. Based on Machlup’s idea the OECD re-dispatched the standards of a knowledge-based economy in the mid-1990s (Godin 214).

Godin (218) analyses the development of Machlup’s economy hypothesis: The inspiration Machlup offered for considering the economies of knowledge was the pertinence of knowledge in social orders: “Knowledge has constantly had influence in financial analysis… Nevertheless,  to most economists and for most issues of commercial concerns, the state of knowledge and its circulation in the public arena are among the information accepted as given” (Machlup 4). Presently, the development of specialized knowledge and the benefit that may come about because of it are surely vital component in the research of financial development and other monetary issues (Machlup 5).

In this paper, the Gulf Cooperation Council (GCC) nations are assessed on both their ICT improvement and the correlative elements that involve the knowledge economy. The term environment, regularly used to allude to the whole arrangement of strategies, establishments, and associations that must be set up for accomplishment to be attained seems to have specific importance for the knowledge economy. Consequently, notwithstanding the GCC nations on physical ICT foundation, the paper outlines the outstanding ranges of instruction and development and their surroundings for business development (enterprise). It presents a cross-country point of view to survey knowledge economy execution, as this will permit the GCC nations to learn lessons from the knowledge of different nations.

Literature Review

Over the past few decades, various researchers and critics have contended that the heading edge of the economy in developed nations has always been determined by innovations based on knowledge and data generation and dispersal. The new advances that developed in the late 1950s increased with the production of more of PCs and afterward surged significantly with the far-reaching utilization of email and the Internet can possibly re-make the nature of work and the economy. By the way, our understanding of the implied knowledge economy remains rather dim, blurred by both proponents and critics who are fast to offer names and appraisals without much consideration regarding confirmation. Still, others see a development industry in giving proficient administrations to associations and countries to aid them in a move to knowledge-based models of production. On the off chance that the knowledge economy is measured by the ascent in knowledge administration, administrations among counseling firms or by the quick development in licensed innovation as a legitimate claim to fame, then its development has been extensive. Fault finders, on the other hand, contend that a great part of the development is decisively in offering data innovation and related administrations. Our point in this part is to deal with these levelheaded discussions and give an outline of the insightful writing in the social sciences on the knowledge-based economy. The paper presents proof for the rapid increase in knowledge generation and examines the key issues that have been tended to by the literature review.

The expansive mark “knowledge economy” entails a wide cluster of exercises and elucidations. No less than three lines of research fall under this category. The most established methodology, with its inceptions going back once more to the early 1960s, concentrates on the ascent of new science-based commercial ventures and their role in social and economic changes. A few investigators incorporate proficient administrations and other data rich businesses, for example, noting the checked development invocation in these areas of the economy in the course of recent decades (Saxenian 90). A center thought bringing together this strand of work is the centrality of hypothetical knowledge as a wellspring of development. With some extension, the new development hypothesis in profitable concerns (Keller 199) could be incorporated here as this work focuses on the vitality of knowledge in financial development, noting that revelations contrast from different inputs because they are non-rivalries’, and speeds up further advancement.

There has been a decent arrangement of public deliberation in the economic concerns field over whether specific commercial ventures are really knowledge-based. Much exertion has gone into examining the amount these areas help development in terms of profitability (Keller 200). Since the extension of knowledge-based businesses and accompanying benefit created, happened in the connection of unexpected macroeconomic and monetary business sector advancements in the 1990s, a great arrangement of prominent writing affirmed that the knowledge economy worked uniquely in contrast to the past in some crucial way. Albeit few researchers now acknowledge such claims, much late research in social science and work matters of trade and profit has concentrated on whether new sorts of employments and novel types of work association have developed lately. The degree to which new modes of work are especially fastened to the knowledge economy is very clear, and exactly how distinctive these work plans are from more established ones is the subject of civil argument (Kamrava 199).

A third strand of work is a great deal tighter and managerial in introduction, concentrating on the role of learning and constant advancement within firms (Saxenian 98). A few associations give off the impression of being great at knowledge creation and exchange, and scientists are intrigued by understanding why and whether these practices might be repeated. Such request is possibly pertinent, yet the center concern of this line of work has been more connected. The more extensive sociological and monetary ramifications concerning whether knowledge is arranged or implicit and what sorts of social plans upgrade or block knowledge era and transmission have as of late started to pull in consideration (Saxenian 111). Still, deliberate research on this theme is rare and has not managed its suggestions for business drills.

The knowledge economy is defined as the production and administrations based on knowledge-escalated exercises that help a quickened pace of innovative and experimental development and just as fast outdated nature. The key segments of the knowledge economy incorporate a more prominent dependence on learned abilities than on physical inputs or common assets, consolidated with endeavors to coordinate upgrades in every phase of the generation process, from the R&D lab to the plant floor and the interface with clients. These progressions are reflected in the expanding relative offer of the terrible local item that is attributable to “nonexistent” capital (Horrigan 67). Obviously, numerous options marks and definitions are more far reaching than our own, yet we decide to keep the concentrate on the generation of clever plans that along these lines lead to new or enhanced products and administrations and hierarchical practices.


With a specific end goal to examine the knowledge-based economy in GCC nations, the methodology of information accumulation is apparent. The state of research demonstrates that the sensation of globalization of advanced education in the Arab world has not yet attracted much consideration in mainstream researchers. In this way, plan of action to contemporary exploration activities and production is somewhat restricted. Field research, master interviews, and the gathering of foundation data were compulsory to get data and considerable information premise, which permits a discriminating research of the flow, advanced education arrangements.

The study methodology is based on a mixture of diverse techniques. The most imperative work routines were an extensive literature search and issue focused interviews with nearby specialists. Data on the dissection of population, monetary, training, and work market information comes from nation level associations and global databases accessible bury alia from the UNDP, World Bank, World Economic Forum (WEF), UNESCO and International Monetary Fund (IMF). These optional information sources give a setting to comprehend the human capital and the financial difficulties that each of the nations faces. The literature likewise incorporates scholastic sources, alluding to current patterns in internationalization and privatization of advanced education. Besides, archives and data to the political and monetary improvements in Qatar, Oman, and GCC were broke down. Nation particular instructive information and yearly reports of advanced education establishments were likewise applicable. Light black writing delivered at all levels of government, scholastics, and business and industry was crucial to investigate the advanced education arrangement. The field research was utilized particularly to procure information and foundation data from the dependable services and the advanced education organizations. The research of the national advancement arrangements, published in Qatar and Oman somewhere around 1995 and 2003, was likewise central to survey and remake the advanced education strategy over the recent decades.

Work area research stamps the second mainstay of the philosophy blend. To get additional data, not accessible in the essential literature review, public and private sites were examined, daily papers, diaries were evaluated, factual yearbooks and other information sources were assessed. This second classification likewise incorporates perceptions and discussions in the field research.

Issue focused interviews with experts were completed within three phases of the field research in Oman and Qatar. More than 60 interviews with key individuals, in charge of and intrigued by the accomplishment of the training framework, were conducted in just about six months of field research in the location. The interviews were held under states of obscurity and centered principally on social affair data about the apparent qualities and shortcomings of the advanced education framework, obstructions and undiscovered assets for change, plans for changes, and so forth. Further questions and discussions with masters were orchestrated in Munich and Aachen (Germany), and in addition in Great Britain. Going by the advanced education reasonable GHEDEX in Muscat and the interest at global interviews in Germany, Great Britain, and Spain finished the information gathering.

The interview notes are utilized to give an outline of the zones of human capital advancement in every nation and the sorts of changes and alterations under way. Further research depended essential on auxiliary information and distributed reports. Therefore, the study does not specifically reference or quote particular authorities who were talked with in the nation studies. Rather, the interview data of each nation’s advanced education arrangement is utilized to depict the general nature of each nation’s advanced education approach. At the point when different materials gave a wellspring of data about particular parts of the advanced education framework, those materials are straightforwardly referred to.

As a result, this study methodology compares six Gulf countries including the Sultanate of Oman, Bahran, UAE, Kuwait and the State of Qatar to secure similarities and contrasts in the utilized change methods. Regardless of diverse geographic and social histories, Qatar and Oman offer numerous demographic and monetary qualities. They likewise confront comparative workforce challenges because of their dependence on transported in the process of childbirth to fill expertise crevices in their national work pools. Oman offers solid political and social likenesses with its kindred Gulf Cooperation Council parts.

In any case, its lower reliance on common assets for its riches has created its financial and socio-demographic advancement to contrast from that of the other GCC parts in noteworthy ways. These nations were decided to show the contrasts in the difficulties confronted by what many people outside the locale think about being as a homogenous gathering of countries. Before picking, the study nations, various logistic stipulations and a few nation level attributes were considered. Especially, troubles were relied upon concerning getting meetings with abnormal state government authorities, without which an individual association or acquaintance would have been unimaginable with secure. The deliberate choice was along these lines made to choose nations that are open and liberal in this admiration. Based on past exploration extend (manufacturer’s recognition proposal), in which the work market strategies of the GCC part states were looked at, a response to the current system in Qatar could be made. Subsequently, it was less demanding to get in contact with careful services and specialists. Oman was chosen as its financial and political foundation contrasts. This empowered an educational nation particular juxtaposition.


While Gulf Cooperation Council (GCC) nations have made extraordinary strides in creating an Information and Communication Technology (ICT) framework, most are still underneath the pattern line of ICT improvement, as caught by the ICT Development Index, given they are for every capita terrible national salary.

  • Inadequate aptitudes, in addition to different variables, are bringing down their composite improvement rankings.
  • Business regulations constraining the offer of outside proprietorship in GCC nations have diminished the pace and level of telecom business sector liberalization.
  • Some GCC nations need far-reaching, solid settled systems to cover most of the nation.
  • There is a project inclination around the vitality and land areas.

The table underneath demonstrates GCC’s advancement in KEI. The benchmarking proposed by the World Bank shows that just Qatar made advancement on the way towards a knowledge economy in the previous years –reaching the most noteworthy KEI in the Arab world, together with the UAE scoring 6.73. Bahrain and Kuwait’s KEI declined over the time compass while the UAE, Oman, and Saudi Arabia record the level of 1995. The rationale of the World Bank is that, especially in the fields of instruction and advancement, as the two significant improvement columns, the development did not keep pace with the quick demographic change. For instance, the terrible enlistment rate in tertiary training declined in all nations. As a rule, it could be expressed that there is a perceptible KEI gap between the little, less populated GCC states and the two crowded nations Oman and Saudi Arabia. At the same time, this crevice is chiefly an outcome of the lower ICT Index contrasted with the small states. With everything taken into account, the World Bank’s Knowledge Appraisal Methodology offers a benchmark to look at changed nations on a summed up level. It is evident that the GCC states fall behind the most developed countries as far as development and training. As a result, the World Bank and the residential stakeholder set a concentrate on these two knowledge columns. The real objective is to build the tertiary selection rate and to encourage innovatively.

Table 1: GCC Economy Knowledge Index and Global Ranking

Global Position Country KEI
47 Oman 6.14
64 Kuwait 5.33
43 Bahrain 6.90
54 Qatar 5.84
42 UAE 6.94

From World Bank (2012)

Table 2: KIE Indicators

Variable Bahrain Kuwait Oman Qatar Saudi Arabia
Public expenditure on education (% GDP)   6.1 4.6 3.6 8.3
Total Spending on R & D (%GDP)   0.19      
Researchers in R&D per million   72.59 3.75    
Scientific-technical Articles per million 44.21 112.97 38.74 33.62 27.25
USPTO per million 0.00 1.63 0.00 0.00 0.65
Tertiary enrollment 33.17 20.92 7.48 22.05 25.43
Computers per 1000 people 163.70 173.40 40.20 214.90 340.10



The world is seeing an unavoidable pattern of receiving knowledge economy as a key to accomplishing advancement and benefit. This knowledge-based financial development speaks to itself as a binding vision in the Arab World. Most Arab nations today are outfitting the force of astounding knowledge to stay aggressive in the worldwide economy of the 21st century. As expressed in the late World Bank report, ventures in development and instruction are principal to accomplish more noteworthy fiscal development in the Middle East. Middle Easterner nations have laid out pertinent approaches and objectives and have made huge moves to meet all necessities that characterize a knowledge economy. They have put resources into a knowledge-based financial model to help make occupations and accomplish the development that is more feasible. All these deliberations have yielded positive results and criticism. Since 2001, the Arab World has recorded the biggest development on Internet clients as contrasted and different locales on the planet. The number of subjects getting to the Internet in the district has increased by more than 600 for every penny. A few countries have additionally started activities to enhance their instruction segment and Information and Communications Technology (ICT) framework. Although the greater part of the Arab nations has fulfilled critical advancement, much still needs to be carried out. As per World Bank’s report, just four Arab nations have positioned in the main 50 on the Knowledge Economy Index. The area keeps on facing numerous difficulties in quest for its target to change into a data based economy, which obliges usage of key cross-sectional changes in instruction, examination and development, and ICT areas, among others.












Works Cited

Godin, Benoit. Measurement and Statistics on Science and Technology: 1930 to the Present.

New York: Routledge, 2004. Print.

Horrigan, John B., “Broadband Adoption and Use in America,” Results of FCC Survey, OBI

            Working Paper Series No. 1, 2010.

Kamrava, Mehran. The Political Economy of the Persian Gulf. New York, NY: Columbia

University Press, 2012. Print.

Keller, Wolfgang, “Absorptive Capacity: On the Creation and Acquisition of Technology in

Development,” Journal of Development Economics, Vol. 49, No. 1, 1996, pp. 199–227.

Machlup, Fritz. The Production and Distribution of Knowledge in the United States. Princeton,

N.J: Princeton University Press, 1962. Print.

Machlup, Fritz. The Economics of Sellers’ Competition: Model Analysis of Sellers’ Conduct.

Baltimore: Johns Hopkins Press, 1952. Print.

Saxenian, Anna Lee, “Regional Networks and the Resurgence of Silicon Valley,” California

            Management Review, Vol. 33, No. 1, 1990, pp. 89–112.

World Bank, “Economy Rankings,” Doing Business, 2012a. As of January 4, 2012: